CB1 Business Finance
Corporate finance, financial statements, and capital structure: the business context for every actuarial decision.
About CB1
CB1 teaches you how companies raise capital, how financial statements work, how banks and insurance companies are regulated, and how corporate decisions interact with markets. For actuaries working in consulting, capital management, mergers, or board-level advisory, CB1 is the language you need to speak fluently.
Who is this for?
Can be taken at any stage. Many students take CB1 alongside a CM paper as a change of pace. Students with a commerce or business background often clear this quickly, sometimes in 6–8 weeks.
Complete Syllabus
- Sources of finance: equity, debt, hybrid instruments, preference shares, retained earnings
- Financial statements: income statement, balance sheet, cash flow, ratio analysis, IFRS
- Capital structure: Modigliani-Miller theorems, WACC, trade-off theory, pecking order
- Dividend policy: dividend irrelevance theorem, signalling, share buybacks, taxes
- Mergers and acquisitions: DCF and comparables valuation, synergies, takeover regulation
- Project appraisal: NPV, IRR, payback, profitability index, real options introduction
- Risk management: financial derivatives for hedging, interest rate swaps, FX risk
- Regulation: Basel III, Solvency II, IRDAI capital requirements, systemic risk
- Behavioural finance: market anomalies, biases, limits to arbitrage
Career Outcomes
Actuarial Consultant, Capital Management Analyst, Corporate Finance (senior career)
₹4–7 LPA with CB1 cleared alongside CM papers
CB1 is more essay-style than CM papers. Practice writing concise, structured answers. Ratio analysis questions are frequent, so know all key ratios and their interpretations.
“I had a commerce background and cleared CB1 in six weeks with S.MONK recorded sessions. Much faster than self-study. The topical breakdown in each session is perfect for the exam format.”